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OEM - Original Equipment Manufacturer

OEM - Original Equipment Manufacturer

OEM – the term Original Equipment Manufacturer originated from the Dutch words “onder eigen merk” which literally means under own brand. According to International Business Machines Corporations (IBM) definition, OEM refers to a company who manufactures equipment that could be marketed or retailed by other company. Certain product manufacturers purchase another product from other companies and retail them without necessarily claiming that they originally owned or manufacture the product. Determining the OEM is essential in acquiring replacement parts. A good example of this is when purchasing an automobile part. A replacement part of the automobile is not necessarily the same name or brand as the automobile unit. In this case, OEM spare parts are required.

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